Starbucks to Implement Weekly Pay and New Bonus Program

Starbucks is changing its compensation structure for both corporate and in-store employees. The coffee giant will transition all workers to weekly paychecks, beginning in August, according to a letter shared with Business Insider.

Barista Bonus Program Details

In addition to weekly pay, Starbucks is introducing a performance-based bonus program for baristas and shift supervisors at its highest-performing stores. This program, launching in July with the first payouts in the fall, allows eligible employees to earn up to $300 per quarter, potentially reaching $1,200 annually.

Performance Metrics for Bonuses

The bonus program is tied to achieving sales goals and consistently providing a positive customer experience. Mike Grams, Starbucks COO, previously discussed the company’s development of in-store “shot scores” – rated from one to five – to evaluate performance across key areas.

These key metrics include customer experience, speed of service during peak hours, partner scheduling, inventory management, and health and safety standards.

Context of the Changes

The announcement comes as Starbucks management resumes negotiations with its union regarding their first collective bargaining agreement. Talks had been stalled for over 15 months.

Union Negotiations and Wage Demands

Business Insider reported in March that the union had lowered its minimum wage request to $17, a reduction from the initial demand of $20 in 2024. The new bonus program will be subject to negotiation with the union, as stated in the letter from Starbucks leadership.

The letter regarding these pay changes was sent to Starbucks employees, referred to as “partners,” by Mike Grams and Sara Kelly, Starbucks’ Chief Partner Officer.